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Finnair has opened its office in Guangzhou and is planning a new route Helsinki to its fourth China destination in the south China city this autumn, a major move that indicates the "one world" alliance of eight airlines, including Finnair, has quickened the pace of entry into China.
Spurred by China's fast growing aviation market, the world's three aviation alliances, including "one world" "star alliance" and "skyteam," have all enlarged cooperation with Chinese airlines.
China Southern, the country's biggest carrier based in Guangzhou, is going through procedures in order to join "skyteam" next year.
For "star alliance," the largest of its kind in the world with 16 member airlines, to incorporate Air China, the national carrier, is of strategic importance. Member airlines of the alliance operate flights to 795 destinations in 139 countries and carry 24.7 percent of the total international passengers.
Nine member airlines of "star alliance" have already opened direct flights to China. Air China keeps a close relationship with "star alliance" and is strategic partner with Lufthansa, United Airlines and All Nippon Airways.
Analysts attribute the fierce competition among member airlines of the three aviation alliances to the fat that the world civil aviation market gets saturated gradually and only the China market is growing rapidly due to a short supply.
According to the International Civil Aviation Organization, China's total aviation turnover ranked the third in the world, only after the United States and Germany.
Although the frequency of Lufthansa and British Airways flights to China has reached a historic high, says aviation analyst Liu Bin, "we can expect more fierce competition of three alliances if we take into consideration the cargo and passenger increase brought about by China's fast economic growth."
"For Chinese airlines, joining alliance will bring less operation cost and wider network, which of course will help sharpen their international competitive edge," Liu says.
(CRIENGLISH.com July 18, 2005)
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